TotalEnergies to Acquire Commercial & Industrial Solar Business of SunPower
TotalEnergies has announced that the company has signed a contract with SunPower Corp.’s to purchase latter’s Commercial & Industrial Solutions (CIS) business for $250 million. The amount includes $60 million of earn-out.
TotalEnergies is the majority shareholder of SunPower, a leading solar technology and energy services provider. Both the companies have approved the acquisition following a thorough process involving discussions with a number of parties. SunPower had created a special committee of its independent directors who recommended the said acquisition unanimously. It is believed that the transaction will close early the second quarter of this year subject to the satisfaction of customary closing conditions. Also, this operation will not reduce TotalEnergies’ majority ownership stake, which stands 50.83%, in SunPower.
This acquisition is another step in TotalEnergies’ roadmap to develop its distributed generation business. The quantum of its business is about 500 MW operational worldwide. The acquisition will also enable TotalEnergies to extend its distributed generation business footprint to the United States. The company will develop more than 100 MW of additional capacity per annum.
The new move is also expected to create synergies with TotalEnergies’ large-scale solar energy portfolio in the U.S. The comprehensive energy solutions and new capabilities in financial and project ownership will benefit the B2B customers.
As far as SunPower is concerned, this acquisition follows the company’s previous announcement to focus on its high-growth residential business. This offers a superior customer experience with a growing ecosystem of innovative products and services. This enables SunPower to explore strategic options for the CIS business. All in all, this win-win operation fully fits TotalEnergies and SunPower’s respective strategies to better serve industrial, commercial and residential customers.
Vincent Stoquart, Senior VP Renewables for TotalEnergies, told the press, “With this acquisition, TotalEnergies is further investing to grow its distributed generation activity in the U.S. and support its B2B customers in meeting their sustainable development goals. It is a new milestone in our renewable development in the country, where we are targeting 4 gigawatts of solar capacity by 2025.”
The Vice President said that the acquisition gives SunPower additional resources to focus on the growing residential market. The organisation looks forward to welcoming the Commercial & Industrial teams and ensuring the continuity of TotalEnergies’ commitment in this business as we integrate this high-quality portfolio of products and customers.
“TotalEnergies is the ideal partner for our CIS business to take advantage of the growing commercial market and opportunities like community solar and front-of-meter storage,” said Peter Faricy, CEO of SunPower. “The sale enables SunPower to focus on creating a superior residential experience, increase our investment in product and digital innovation, and reach more homeowners. The enhanced strategic clarity created by this transaction will help SunPower lead the industry and deliver maximum value to our investors, partners and customers,” said Vincent Stoquart.